Foreign banks formally test the waters of public offering fund product trusteeship. ByStandard CharteredThe bank-managed Huisheng benefit hybrid fund has been approved recently, which is also the first public offering fund product to be hosted by a foreign bank.
Industry insiders believe that with the accelerated opening of the domestic capital market, foreign custodian institutions may gain market share in the custody of foreign public funds and fund companies' cross-border products in the future.
The latest issue of the "Fund raising Application approval Progress Table" shows that the Hui Sheng Hui Yi mixed Fund reported in November last year was officially approved, and the custodian bank of the fund is Standard Chartered Bank.
Standard Chartered Bank (China) Co., Ltd. was granted a fund custody license on October 16, 2018, becoming the first foreign bank to have the qualification of public offering fund custody. 2020Citigroup和Deutsche BankIt has also been approved as a trustee of public offering funds. In addition, HSBC submitted an application for trusteeship qualification for public funds in April last year.
A fund company official said that at present, the public escrow market is still "sales decision escrow", and funds sold to bank retail customers are mainly managed by state-owned banks or joint-stock banks. Some public funds that are less dependent on bank channels and are mainly aimed at institutions or in third-party fund sales institutions such as Ant Wealth and Tiantian Fund are more likely to choose to cooperate with foreign banks.
"the entry of foreign banks into the public fund custody market will certainly bring new changes to this field, but it should not significantly change the current market pattern." The above-mentioned fund companies believe that the six major state-owned banks plusChina Merchants Bank(market 600036) (Hong Kong stock 03968), no matter in terms of talent, experience accumulation or system construction, it has obvious advantages. "ETF funds and bond funds involving transactions in the interbank market, these two types of fund products have relatively high requirements for custodian capabilities, and we will still cooperate with custodian institutions with business experience. For ordinary equity funds, fund companies usually choose institutions with strong ability to act as trustees of their products at the same time. "
According to a foreign private equity person, the advantages of foreign custodian institutions are more reflected in their experience in overseas markets. "Foreign custodians are more familiar with the risk control processes and anti-money laundering requirements involved in fund companies' layout of cross-border financial products, and they also have a better understanding of the preferences of foreign investors, which is very helpful for domestic fund companies to expand their overseas business. The two sides can cooperate in future, including QDII and cross-border financial products."
"with the increasingly diversified development of the asset management market, fund companies will gradually increase their cross-border business in the future. According to the current laws and regulations, cross-border financial products need to have custodian institutions both at home and abroad, while foreign institutions have a large number of branches overseas, and once they are approved for domestic custody, they can win the domestic and foreign custody business of cross-border products at the same time. " An analysis by a person from the product department of a fund company in Shanghai.
A person in the market of a fund company in Shanghai believes that foreign banks are expected to make special features in public offering cross-border business. "for example, some index QDII funds, fund companies mostly put this kind of products on the Internet platform to sell. Foreign banks may rely on the advantage of both domestic and overseas custodian qualifications to improve the clearing and settlement efficiency of such funds. At that time, fund companies will consider placing such funds in foreign banks for custody. "